May PDM May 18, 2023
Topic:
“Gain Competitive Advantage Using Strategic Procurement.”
Presenter: Steve Greene
Abstract:
Steve’s presentation covers Peter Kraljic’s Portfolio Purchasing Model and its Product Purchasing Classification Matrix.
The Portfolio Purchasing Model’s four steps serve as an analytical tool to improve procurement strategies.
With a more concrete vision of how outcomes in purchase item categories impact overall business, procurement leaders can develop and implement strategic plans to engage important suppliers.
Supply chain professionals can provide insight and data to help determine a procurement strategy which both ensures favorable conditions of short-term supply and eliminates long-term need of scarce and costly purchased items.
This optimal strategy anticipates both internal strategic organizational needs and external market dynamics to improve supply security and lower procurement costs.
Kraljic’s Model provides a simple but effective framework to:
- forecast supply scenarios,
- identify available purchasing options, and
- develop individual supply strategies for important purchased items.
Using the Model and its Matrix provides three key benefits:
- helps buyers act strategically on each purchased item instead of making short-term deals,
- shows where buyers can focus on having the most purchasing power and making the most profit, and
- improves collaboration with both internal company functions and supply chain partners.
Steve Greene, CSCP, CLTD, CPIM, IDP
Steve Greene helps manage student support programs at Greenville Technical College (GTC). Steve instructed the CPIM 1 certification prep class last October for GTC’s continuing education group.
A year before earning his CPIM in March 2021, Steve started to write many articles and posts on supply chains that were published in various LinkedIn groups, in ASCM online blogs, and later in ISE Magazine.
Steve’s other supply chain topics include inventory optimization using ABC-XYZ techniques, integrated business planning using CPFR, advanced manufacturing using APS systems, ERP selection, and product development.
You may contact Steve through his LinkedIn profile:
https://www.linkedin.com/in/stevegreene-supplychains-operations/
